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Form 8-K/A

sec.gov

8-K/A — MICROVISION, INC.

Accession: 0001493152-26-018360

Filed: 2026-04-21

Period: 2026-02-03

CIK: 0000065770

SIC: 3679 (ELECTRONIC COMPONENTS, NEC)

Item: Financial Statements and Exhibits

Documents

8-K/A — form8-ka.htm (Primary)

EX-23.1 (ex23-1.htm)

EX-99.1 (ex99-1.htm)

EX-99.2 (ex99-2.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K/A

8-K/A (Primary)

Filename: form8-ka.htm · Sequence: 1

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2026-02-03

2026-02-03

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UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

FORM

8-K/A

Amendment

No. 1

CURRENT

REPORT

PURSUANT

TO SECTION 13 OR 15(d) OF

THE

SECURITIES EXCHANGE ACT OF 1934

DATE

OF REPORT (DATE OF EARLIEST EVENT REPORTED): February 3, 2026

MicroVision,

Inc.

(Exact

name of registrant as specified in its charter)

Delaware

001-34170

91-1600822

(State

or other jurisdiction

of

incorporation)

(Commission

File

Number)

(I.R.S.

Employer

Identification

No.)

18390

NE 68th Street

Redmond,

Washington 98052

(Address

of principal executive offices) (Zip code)

(425)

936-6847

Registrant’s

telephone number, including area code

Not

Applicable

(Former

name or former address if changed since last report)

Check

the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under

any of the following provisions:

Written communications pursuant to Rule 425 under the Securities

Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under

the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under

the Exchange Act (17 CFR 240.13e-4(c))

Securities

registered pursuant to Section 12(b) of the Act:

Title

of each class

Trading

symbol(s)

Name

of each exchange on which registered

Common

stock, par value $0.001 per share

MVIS

The

NASDAQ Stock Market

Indicate

by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405

of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging

growth company ☐

If

an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Explanatory

Note

On

February 3, 2026, MicroVision, Inc. (“MicroVision” or the “Company”) completed the acquisition of certain assets

from Luminar Technologies, Inc. (“Luminar”) related to Luminar’s advanced light detection and ranging (“LiDAR”)

sensor business (the “Acquisition”) pursuant to the previously announced Asset Purchase Agreement, dated January 26, 2026

and amended as of February 3, 2026.

This

Amendment No. 1 on Form 8-K/A (“Amendment No. 1”) is being filed by MicroVision to amend its Current Report on Form 8-K filed

with the U.S. Securities and Exchange Commission (the “SEC”) on February 4, 2026 (the “Initial Report”) solely

to provide the disclosures required by Item 9.01 of Form 8-K that were omitted from the Initial Report, including the required historical

financial statements of the LiDAR business of Luminar and the required pro forma financial information. Except as otherwise provided

herein, the disclosures made in the Initial Report remain unchanged. This Amendment No. 1 should be read in conjunction with the Initial

Report, which provides a more complete description of the Acquisition.

The

pro forma financial information included in this Form 8-K/A has been presented for informational purposes only, is based on various adjustments

and assumptions and is not necessarily indicative of what the Company’s consolidated financial statements would have been had the

Acquisition and other adjustments been completed as of the dates indicated or will be for any future periods.

Item

9.01. Financial Statements and Exhibits.

(a)

Financial Statements of Businesses or Funds Acquired.

The

audited combined financial statements of the LiDAR business of Luminar for the fiscal years ended December 31, 2024 and December 31,

2025 are attached as Exhibit 99.1 hereto and incorporated herein by reference.

(b)

Pro Forma Financial Information.

The

unaudited pro forma condensed combined financial information of the Company as of December 31, 2025 and for the year then ended is

attached as Exhibit 99.2 hereto and incorporated herein by reference. This unaudited pro forma financial information gives effect to

the Acquisition.

(c)

Shell Company Transactions.

Not

applicable.

(d)

Exhibits.

Exhibit

No.

Description

23.1

Consent of Baker Tilly US, LLP, independent auditors.

99.1

Audited combined financial statements of the LiDAR business of Luminar Technologies, Inc. for the fiscal years ended December 31, 2024 and December 31, 2025.

99.2

Unaudited pro forma condensed combined financial information of MicroVision as of December 31, 2025 and for the year then ended.

104

Cover

Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant

to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by

the undersigned hereunto duly authorized.

MICROVISION,

INC.

By:

/s/

Drew G. Markham

Drew

G. Markham

Senior

Vice President, General Counsel and Secretary

Dated:

April 21, 2026

EX-23.1

EX-23.1

Filename: ex23-1.htm · Sequence: 2

Exhibit

23.1

Consent

of Independent Auditors

We

consent to the incorporation by reference in the Registration Statements on Form S-3 of MicroVision, Inc. (No. 333-184703, No. 333-184702,

No. 333-182462, No. 333-175419, No. 333 160577, No. 333-228113, No. 333-253145, No. 333-272616 and No. 333-282840) and Form S-8 (No.

333-265489, No. 333-184701, No. 333-173114, No. 333-163929, No. 333-19011, No. 333-71373, No. 333-42276, No. 333-45534, No. 333-73652,

No. 333-89176, No. 333-141458, No. 333-249418, No. 333-286142 and No. 333-287862) of our report dated April 21, 2026, relating to the

combined carve-out financial statements of the Luminar Light Detection and Ranging (“LiDAR”) Business of Luminar Technologies,

Inc. (which report expresses an unmodified opinion and includes emphasis of matter paragraphs relating to a going concern uncertainty

and bankruptcy-related debt accounting), appearing in this Current Report on Form 8-K/A dated February 3, 2026 of MicroVision, Inc.

/s/

Baker Tilly US, LLP

Seattle,

Washington

April

21, 2026

EX-99.1

EX-99.1

Filename: ex99-1.htm · Sequence: 3

Exhibit 99.1

INDEX

TO COMBINED FINANCIAL STATEMENTS

Page

Report

of Independent Auditor

2

Combined

Balance Sheets as of December 31, 2025 and 2024

4

Combined Statements of Operations for the Years ended December 31, 2025 and 2024

5

Combined Statements of Changes in Equity for the Years ended December 31, 2025 and 2024

6

Combined Statements of Cash Flows for the Years ended December 31, 2025 and 2024

7

Notes to Combined Financial Statements

8

Note 1. Description of Business and Basis of Presentation

8

Note 2. Summary of Significant Accounting Policies

9

Note 3. Bankruptcy Proceedings

16

Note 4. Revenue

17

Note 5. Restructuring and Other Costs

18

Note 6. Financial Statement Components

19

Note 7. Leases

21

Note 8. Income Taxes

23

Note 9. Commitments and Contingencies

26

Note 10. Related Party Transaction

26

Note 11. Subsequent Events

27

1

Report

of Independent Auditors

The

Board of Directors of MicroVision, Inc.

Luminar

Light Detection and Ranging Business

Report

on the Audit of the Financial Statements

Opinion

We

have audited the carved out and combined financial statements of the Luminar Light Detection and Ranging Business, which comprise the

carved out and combined balance sheets as of December 31, 2025 and 2024, and the related carved out and combined statements of operations,

changes in equity, and cash flows for the years then ended, and the related notes to the carved out and combined financial statements.

In

our opinion, the accompanying carved out and combined financial statements present fairly, in all material respects, the financial position

of the Luminar Light Detection and Ranging Business as of December 31, 2025, and 2024, and the results of its operations and its cash

flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis

for Opinion

The

carved out and combined financial statements have been derived from the consolidated financial statements and accounting records of Luminar

Technologies, Inc. (the “Parent”). The carved out and combined financial statements do not purport to represent the financial

position, results of operations, or cash flows of the Parent as a whole.

We

conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities

under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section

of our report. We are required to be independent of the Luminar Light Detection and Ranging Business and to meet our other ethical responsibilities,

in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

Substantial

Doubt About the Entity’s Ability to Continue as a Going Concern

The

accompanying carved out and combined financial statements have been prepared assuming that the Luminar Light Detection and Ranging

Business will continue as a going concern.

As discussed in Note 2 to the carved out and combined financial statements, the Parent has suffered recurring losses from operations,

and filed for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the

Southern District of Texas that raises substantial doubt about its ability to continue as a going concern. Management’s evaluation

of the events and conditions and management’s plans regarding these matters are also described in Note 2. The carved out and combined

financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified

with respect to this matter.

Emphasis

of Matter - Bankruptcy-related debt accounting

As

described in Notes 1 and 3 to the carved out and combined financial statements, on December 15, 2025, the Parent and certain of its subsidiaries

filed voluntary petitions relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the

Southern District of Texas, commencing Chapter 11 cases. As a result of the bankruptcy proceedings, management applied generally accepted

accounting principles applicable to reorganization in preparing the carved out and combined financial statements. These accounting principles

require that, for periods including and after the filing of a Chapter 11 petition, the consolidated financial statements distinguish

transactions and events that were directly associated with the reorganization from the ongoing operations of the business. Pre-petition

unsecured and under secured claims impacted by the bankruptcy reorganization process in the amount of $78.4 million were classified as

liabilities subject to compromise in the carved out and combined balance sheet as of December 31, 2025. Additionally, certain expenses

and other items resulting from and recognized during the bankruptcy proceedings in the amount of $3.5 million were recorded in reorganization

items, net in the carved out and combined statement of operation for the year ended December 31, 2025. Our opinion is not modified with

respect to this matter.

2

Responsibilities

of Management for the Financial Statements

Management

is responsible for the preparation and fair presentation of the carved out and combined financial statements in accordance with accounting

principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control

relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud

or error.

In

preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate,

that raise substantial doubt about the Luminar Light Detection and Ranging Business’s ability to continue as a going concern within

one year after the date that the financial statements are available to be issued.

Auditor’s

Responsibilities for the Audit of the Financial Statements

Our

objectives are to obtain reasonable assurance about whether the carved out and combined financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance

is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with

GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud

is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the

override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the

aggregate, they would influence the judgment made by a reasonable user based on the carved out and combined financial statements.

In

performing an audit in accordance with GAAS, we:

● Exercise

professional judgment and maintain professional skepticism throughout the audit.

● Identify

and assess the risks of material misstatement of the carved out and combined financial statements,

whether due to fraud or error, and design and perform audit procedures responsive to those

risks. Such procedures include examining, on a test basis, evidence regarding the amounts

and disclosures in the carved out and combined financial statements.

● Obtain

an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion

on the effectiveness of Luminar Light Detection and Ranging Business’s internal control.

Accordingly, no such opinion is expressed.

● Evaluate

the appropriateness of accounting policies used and the reasonableness of significant accounting

estimates made by management, as well as evaluate the overall presentation of the carved

out and combined financial statements.

● Conclude

whether, in our judgment, there are conditions or events, considered in the aggregate, that

raise substantial doubt about the Luminar Light Detection and Ranging Business’s ability

to continue as a going concern for a reasonable period of time.

We

are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit,

significant audit findings, and certain internal control–related matters that we identified during the audit.

/s/

Baker Tilly US, LLP

Seattle,

WA

April

21, 2026

3

Luminar

LiDAR Business

Combined

Balance Sheets

(In

thousands)

December 31,

2025

2024

ASSETS

Current assets:

Accounts receivable

$ 2,711

$ 8,345

Inventory

3,497

11,468

Prepaid expenses and other current assets

10,854

25,046

Total current assets

17,062

44,859

Property and equipment, net

31,626

47,364

Operating lease right-of-use assets

12,084

28,076

Intangible assets, net

6,792

9,190

Goodwill

1,750

1,750

Other non-current assets

3,440

6,381

Total assets

$ 72,754

$ 137,620

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$ 277

$ 14,410

Accrued and other current liabilities

10,016

11,896

Operating lease liabilities

931

8,928

Total current liabilities

11,224

35,234

Operating lease liabilities, non-current

2,273

21,731

Other non-current liabilities

184

815

Total liabilities not subject to compromise

13,681

57,780

Liabilities subject to compromise

78,418

Total liabilities

92,099

57,780

Commitments and contingencies (see Note 9)

Equity

Net Parent investment

(19,345 )

79,840

Total equity

(19,345 )

79,840

Total liabilities and equity

$ 72,754

$ 137,620

The

accompanying notes are an integral part of these Combined Financial Statements.

4

Luminar

LiDAR Business

Combined

Statements of Operations

(In

thousands)

Year Ended December 31,

2025

2024

Revenue

$ 40,976

$ 53,531

Cost of sales (includes loss on firm purchase commitments of $42,811 and nil, respectively)

120,754

81,352

Gross loss

(79,778 )

(27,821 )

Operating expenses:

Research and development

135,577

230,701

Sales and marketing

13,902

39,513

General and administrative

17,903

88,658

Impairment of long-lived assets

6,390

Restructuring and other costs

21,713

9,252

Total operating expenses

195,485

368,124

Loss from operations

(275,263 )

(395,945 )

Other income (expense), net

(640 )

431

Loss before reorganization items and provision for income taxes

(275,903 )

(395,514 )

Reorganization items

(3,450 )

Provision for income taxes

(1,365 )

(515 )

Net loss

$ (280,718 )

$ (396,029 )

The

accompanying notes are an integral part of these Combined Financial Statements.

5

Luminar

LiDAR Business

Combined

Statements of Changes in Equity

(In

thousands)

Net Parent investment

Total Equity

Balance, January 1, 2024

$ 85,599

$ 85,599

Net Loss

(396,029 )

(396,029 )

Net transfer from Parent

390,270

390,270

Balance, December 31, 2024

$ 79,840

$ 79,840

Net Loss

(280,718 )

(280,718 )

Net transfer from Parent

181,533

181,533

Balance, December 31, 2025

$ (19,345 )

$ (19,345 )

The

accompanying notes are an integral part of these Combined Financial Statements.

6

Luminar

LiDAR Business

Combined

Statements of Cash Flows

(In

thousands)

Year Ended December 31,

2025

2024

Cash flows from operating activities:

Net loss

$ (280,718 )

$ (396,029 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

14,017

22,255

Amortization of operating lease right-of-use assets

5,152

7,647

Vendor stock in lieu of cash program

200

7,594

Inventory write-offs and write-downs

12,565

19,893

Loss on firm purchase commitment

42,811

Gain on sale or disposal of property and equipment

(414 )

(51 )

Stock-based compensation, including restructuring costs

9,992

116,176

Impairment of long-lived assets

6,390

Change in product warranty and other

4,808

(3,523 )

Changes in operating assets and liabilities:

Accounts receivable

5,635

3,870

Inventories

(4,595 )

(20,163 )

Prepaid expenses and other current assets

14,192

(5,218 )

Other non-current assets

21,850

11,740

Accounts payable

10,103

(3,263 )

Accrued and other current liabilities

(14,201 )

(12,899 )

Other non-current liabilities

(20,182 )

(16,872 )

Net cash used in operating activities

(172,395 )

(268,843 )

Cash flows from investing activities:

Purchases of property and equipment

(1,336 )

(4,871 )

Proceeds from disposal of property and equipment

305

135

Net cash used in investing activities

(1,031 )

(4,736 )

Cash flows from financing activities:

Net transfer from Parent

173,426

273,579

Net cash provided by financing activities

173,426

273,579

Net increase (decrease) in cash, cash equivalents and restricted cash

Beginning cash, cash equivalents and restricted cash

Ending cash, cash equivalents and restricted cash

$ —

$ —

Supplemental disclosures of cash flow information:

Cash paid (refund received) for taxes

$ 479

$ (343 )

Supplemental disclosures of noncash investing and financing activities:

Recognition/ derecognition of right-of-use assets in exchange for lease obligations

(9,714 )

(5,277 )

Purchases of property and equipment recorded in accounts payable and accrued liabilities

250

490

The

accompanying notes are an integral part of these Combined Financial Statements.

7

Luminar

LiDAR Business

NOTES

TO COMBINED FINANCIAL STATEMENTS

Note

1. Description of Business and Basis of Presentation

The

Luminar Light Detection and Ranging (“LiDAR”) Business (the “Business” or the “Company”) develops

technology, specializing in advanced LiDAR hardware and software solutions to enable the world’s safest and smartest vehicles.

The LiDAR technology provides increased situational awareness in a broad range of driving environments through improved and higher confidence

detection and planning at all vehicle speeds. Beyond sensor hardware, its product portfolio has expanded to include in-development software

capabilities, such as perception and high-definition “3D” mapping and localization, designed to monetize the ecosystem

of improved safety and autonomy enabled by LiDAR. The Company is composed of certain net assets and operating activities related to historical

operations of certain entities of Luminar Technologies Inc and subsidiaries (“Luminar” or the “Parent”). The

business is geographically dispersed, although a significant percentage of the Company’s sales are generated in North America.

The Company has personnel in various locations in the United States and internationally including Germany, Israel, Sweden, Mexico, Shanghai,

Hong Kong, Cayman and India Services.

On

December 15, 2025 and December 31, 2025, as applicable, the Parent (the “Debtors”) filed voluntary petitions (the “Bankruptcy

Petitions”) for relief under chapter 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy

Court for the Southern District of Texas (the “Bankruptcy Court”) thereby commencing chapter 11 cases (the “Chapter

11 Cases”).

The

Parent also filed a motion seeking authorization to conduct sale processes for the Business designed to achieve the highest or otherwise

best offer for the assets pursuant to section 363 of Bankruptcy Code.

In

addition, the Parent filed a proposed Chapter 11 Plan of Liquidation of the Company (the “Plan of Liquidation” or “Plan”)

and a related disclosure statement with the Bankruptcy Court. The Plan of Liquidation provides for the establishment of a liquidation

trust to oversee and implement the liquidation of the Parent’s remaining assets and distribute the proceeds thereof to the Parent’s

stakeholders.

For

additional information regarding the Chapter 11 Cases, see Note 3, Bankruptcy Proceedings, Note 11, Subsequent Events, and for

additional information on the Company’s ability to continue as a going concern, see Note 2, Summary of Significant Accounting Policies

- Liquidity and Going Concern.

Basis

of Presentation

The

Combined Financial Statements and footnotes (the “Combined Financial Statements”) of the Company are prepared on a carve-out

basis using historical results of operations and historical basis of assets and liabilities of the Parent based on the management approach

of the LiDAR Business in accordance with generally accepted accounting principles in the United States of America (“U.S.

GAAP”). All intercompany balances and transactions within the Company have been eliminated in these Combined Financial Statements.

As described in Note 10, Related Party Transactions, certain transactions between the Company and the Parent have been included in the

Combined Financial Statements.

The

accompanying Combined Financial Statements present the assets, liabilities, revenues, and expenses directly attributable to the Company,

and an allocation of certain corporate and overhead costs incurred by Parent. The Company does not operate as a separate, standalone

entity; historically, its financial results have primarily been reported within Parent’s Autonomy Solutions (“AS”)

segment, with limited activity reported within Parent’s Advanced Technologies and Services (“ATS”) segment.

Management

believes that the assumptions underlying the Combined Financial Statements are reasonable. However, the Combined Financial Statements

may not be indicative of the combined financial position, results of operations, or cash flows of the Company in the future or if the

Company had operated independently of the Parent. Actual costs that would have been incurred if the Company had operated as a standalone

company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, primarily

including technology support, accounting and finance, marketing, legal, and other general corporate and administrative costs, such as

treasury, human resources, executive management, and others. The Company may also incur additional costs associated with being a standalone

entity that were not included in the expense allocations and, therefore, would result in additional costs that are not reflected in the

historical results of operations, financial position, and cash flows.

8

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Principal

assumptions underlying the Combined Financial Statements include:

● The

Combined Statements of Operations include all revenues and costs directly attributable to

the Company and an allocation of certain corporate and overhead costs incurred by Parent

related to technology, finance, legal, and other expenses supporting the Company. In circumstances

where specific identification of charges was not practical, a reasonable method of allocation

(primarily headcount) was applied to those charges. Refer to Note 10, Related Party Transactions,

for further discussion. These allocated amounts, however, are not necessarily indicative

of the actual amounts that might have been incurred or realized had the Company operated

as an independent, standalone entity during the periods presented, nor are they indicative

of the Company’s future operations. Consequently, the Combined Statements of Operations

do not necessarily represent the results the Company would have achieved if the Company had

operated as a separate standalone entity during the periods presented. It is not practicable

to estimate the actual costs that would have been incurred had the Company been a separate,

standalone company during the periods presented.

● The

Combined Balance Sheets include the attribution of certain assets and liabilities directly

attributable to the Company. The Company’s cash is all managed by the Parent and no

cash has been reflected within the Combined Balance Sheets. The Company’s current cash

process is not reflective of the manner in which the Company would have financed its operations

had it been a standalone business separate from the Parent during the periods presented.

Further, as part of current cash process, the Parent funds the Company’s operations

through transfer of cash to the Company. The amounts associated with this process is reported

in “Net Parent investment” as a component of Parent Equity.

● “Net

Parent investment” in the Combined Statements of Changes in Equity and the Combined

Balance Sheets represents the Parent’s historical investment in the Company and includes

accumulated net earnings attributable to the Company, the net effect of transactions with

the Parent and the Parent’s entities, and an allocation of certain corporate and overhead

costs historically incurred by Parent.

● The

majority of transactions between the Parent and the Company do not have a history of settlement

and are reflected in equity in our Combined Statements of Financial Position as Net Parent

investment and when cash is utilized (contributed), in the Combined Statements of

Cash Flows as a financing activity. See Note 10, Related Party Transactions, for additional

information.

Note

2. Summary of Significant Accounting Policies

Bankruptcy

Accounting

As

a result of the Bankruptcy Petitions filed with the Bankruptcy Court, the Parent has applied the provisions of Financial Accounting Standards

Board’s (“FASB”) Accounting Standards Codification (“ASC”) 852, Reorganization (“ASC 852”),

in preparing the accompanying Combined Financial Statements. ASC 852 requires that, for periods including and after the filing of a chapter

11 petition, the Combined Financial Statements distinguish transactions and events that are directly associated with the Chapter 11 Cases

from the ongoing operations of the business. Accordingly, for the period beginning December 15, 2025, pre-petition unsecured and under

secured claims related to the Parent that may be impacted by the bankruptcy proceedings have been classified as liabilities subject to

compromise in the Combined Balance Sheets. Liabilities subject to compromise include pre-petition liabilities for which there is uncertainty

about whether such pre-petition liabilities could be impaired as a result of the Chapter 11 Cases. Liabilities subject to compromise

are recorded at the expected amount of the total allowed claim, even if they may ultimately be settled for different amounts. In addition,

expenses directly and incrementally resulting from the Chapter 11 Cases are classified as reorganization items in the Combined Statements

of Operations. See Note 3, Bankruptcy Proceedings, for additional information.

Use

of Estimates

The preparation of Combined

Financial Statements in conformity with U.S. GAAP requires management to make judgments, estimates, and assumptions that affect

the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. The significant estimates made by management

include useful lives of long-lived assets, valuation allowance for deferred tax assets, forecasted costs associated with non-recurring

engineering (“NRE”) services, restructuring and other costs, valuation of distinct goods and services in the purchase contract

with customers, reorganization items, liabilities subject to compromise, legal contingencies, net realizable value of inventory, accrual

for loss firm purchase commitments and stock-based compensation expense. Management periodically evaluates such estimates and they are

adjusted prospectively based upon such periodic evaluation. Actual results could differ from those estimates.

9

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Liquidity

and Going Concern

In

accordance with ASC Subtopic 205-40, Presentation of Financial Statements – Going Concern, the Company has evaluated whether there

are conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern

within one year after the date that the Combined Financial Statements included in this report are issued.

Since

inception, the Company has not generated positive cash flows from operating activities and has incurred significant losses from operations.

For the years ended December 31, 2025 and 2024, the Company generated a net loss of $280.7 million and $396.0 million, respectively.

The accompanying Combined Financial Statements are prepared in accordance with U.S. GAAP applicable to a going concern, which

contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, management has

concluded that the operating losses raise substantial doubt about the Company’s ability to continue as a going concern for 12 months

following the issuance of the financial statements.

Concentration

Risk

The

Company’s revenue is derived from customers located in the United States and international markets. Two customers, customer A and

customer B, accounted for 49% and 26% of the Company’s revenue for the year ended December 31, 2025, respectively. Three customers,

customer A, customer B, and customer C, accounted for 14%, 55%, and 11% of the Company’s revenue for the year ended December 31,

2024, respectively.

Two

customers, customer A and customer D, accounted for 17% and 11% of the Company’s accounts receivable as of December 31,

2025, respectively. Two customers, customer A and customer B, accounted for 38% and 54% of the Company’s accounts receivable as

of December 31, 2024, respectively.

Accounts

Receivable

Accounts

receivables are recorded at the invoiced amount and do not bear interest. The Company reviews the need for an allowance for doubtful

accounts quarterly based on historical experience with each customer and the specifics of each customer arrangement. The Company did

not have material write-offs in any period presented, and as of December 31, 2025 and 2024, the allowance for doubtful accounts was not

material.

Inventory

The

Company values inventory at the lower of cost or net realizable value. Costs resulting from under-utilized capacity are recorded as period

expenses and not absorbed into inventory value. The Company determines the cost of inventory using the standard-cost method, which approximates

actual costs based on a first-in, first-out method. In assessing the ultimate recoverability of inventory, the Company makes estimates

regarding future customer demand, the timing of new product introductions, economic trends, and market conditions. If the actual product

demand is significantly lower than forecasted, the Company may be required to record inventory write-downs, which would be charged to

cost of sales. Furthermore, the Company periodically reviews its firm commitments for the purchase of minimum order quantities. If the

minimum order quantities exceed the Company’s future demand, a net loss is accrued in cost of sales for such future inventory purchases.

Property

and Equipment

Property

and equipment are stated at cost less accumulated depreciation and amortization, and are depreciated using the straight-line method over

the estimated useful lives of the assets as follows:

Asset

Category

Estimated

useful lives

Machinery

and equipment

1

to 7 years

Computer

hardware and software

3

to 5 years

Demonstration

fleet and demonstration units

2

to 5 years

Leasehold

improvements

Shorter

of useful life or lease term

Vehicles

5

years

Furniture

and fixtures

7

years

10

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Maintenance

and repairs are expensed as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed

of, the cost and accumulated depreciation and amortization are removed from the Combined Balance Sheets, and any resulting gain or loss

is reflected in the Combined Statements of Operations in the period realized.

Intangible

Assets

Intangible

assets, consisting of acquired developed technology and assembled workforce, are carried at cost less accumulated amortization. All intangible

assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated remaining economic

lives, ranging from one to ten years. Amortization expense is included in research and development. Intangible assets are reviewed for

impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable.

Goodwill

The

Company records goodwill when the consideration paid in a business combination exceeds the fair value of the net tangible assets and

the identified intangible assets acquired. Goodwill is not amortized, but instead is required to be tested for impairment annually and

whenever events or changes in circumstances indicate that the carrying value of goodwill may exceed its fair value.

The

Company reviews goodwill for impairment annually in its third quarter by initially considering qualitative factors to determine whether

it is more likely than not that the fair value is less than its carrying amount, including goodwill, as a basis for determining whether

it is necessary to perform a quantitative analysis. If it is determined that it is more likely than not that the fair value of the reporting

unit is less than its carrying amount, a quantitative analysis is performed to identify goodwill impairment. If the carrying amount exceeds

its estimated fair value, the Company records an impairment based on the difference between fair value and carrying amount as a reduction

to goodwill. The fair value of a reporting unit refers to the price that would be received to sell in an orderly transaction between

market participants. The Company estimates the fair values of its reporting units using a discounted cash flow model. Based on the annual

assessment analysis, the Company concluded that there was no impairment of goodwill.

Impairment

of Long-Lived Assets

The

Company reviews tangible long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount

of an asset group may not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing

the estimated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired,

the asset is written down to fair value. The Company uses market participant perspective when determining fair value of an asset group

based on estimated future cash flows. See Note 6, Financial Statement Components, for additional information regarding the impairment

charge for the year ended December 31, 2025.

Product

Warranties

Estimated

future warranty costs are accrued and charged to cost of sales in the period that the related revenue is recognized. These estimates

are based on historical warranty experience and any known or expected changes in warranty exposure, such as trends of product reliability

and costs of repairing and replacing defective products. The Company periodically assesses the adequacy of its recorded warranty liabilities

and adjusts the said estimates as necessary.

Revenue

Recognition

Under

ASC 606, the Company determines revenue recognition through the following steps:

● Identifying

the contract, or contracts, with the customer;

● Identifying

the performance obligations in the contract;

● Determining

the transaction price;

● Allocating

the transaction price to performance obligations in the contract; and

● Recognizing

revenue when, or as, the Company satisfies performance obligations by transferring the promised

goods or services.

11

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Nature

of Products and Services and Revenue Recognition

The

Company derives revenue primarily from (a) product sales of LiDAR sensors to customers and distributors, (b) non-recurring engineering

services under fixed fee arrangements (“NRE services”) to integrate its LiDAR hardware for advanced driver assistance systems

(“ADAS”) and autonomous applications in vehicle platforms, and (c) licensing of certain data and information.

Revenue

from product sales is recognized at a point in time when control of the goods is transferred to the customer, generally occurring upon

shipment or delivery dependent upon the terms of the underlying contract. Certain customer arrangements involve NRE services to design

and develop custom prototype products to customers. The Company recognizes revenue from these NRE arrangements over time as services

are provided or at point in time upon completion and acceptance by the customer of contract deliverables, depending on the terms of the

arrangement. Revenue is deferred for any amounts billed or received prior to delivery of services.

For

NRE services revenue recognized over time, the Company recognizes revenue using an input method based on contract cost incurred to date

compared to total estimated contract costs (cost-to-cost). For NRE service projects, the Company contracts with customers based on a

fixed fee basis and revenue is recognized based on the progress or the percentage of completion of the NRE service project. Expenses

associated with performance of work may be reimbursed with a markup depending on contractual terms and are included in revenue.

Contract

costs related to NRE arrangements are incurred over time, which can be several years, and the estimation of these costs requires management’s

judgment. Significant judgment is required when estimating total contract costs and progress to completion on the arrangements, as well

as whether a loss is expected to be incurred on the contract. In estimating total contract costs, the Company is also required to estimate

the effort expected to be incurred to complete a NRE project. These estimates are subject to significant uncertainty, as actual time

and effort incurred on completing a NRE project or actual rates of either internal or contracted personnel working on such NRE projects

may differ from the Company’s estimates. Changes in circumstances may change the original estimates of revenues, costs, or extent

of progress toward completion, and revisions to the estimates are made which may result in increases or decreases in estimated revenues

or costs, and such revisions are reflected in income in the period in which the circumstances that gave rise to the revision become known

to us. The Company performs ongoing profitability analysis of its contracts accounted for under this method to determine

whether the latest estimates of revenues, costs, and profits require updating. If at any time these estimates indicate that the contract

will not be profitable, the entire estimated loss for the remainder of the contract is recorded immediately.

The

Company enters into term-based licenses that provide customers the right to use certain information available with the Company. Revenue

from these licenses is recognized at the point in time at which the customer is able to use and benefit from the licensed information,

which is generally upon delivery of the information to the customer or upon commencement of the renewal term.

Amounts

billed to customers for shipping and handling are included in revenue. Taxes collected from customers and remitted to governmental authorities

are excluded from revenue on the net basis of accounting.

Arrangements

with Multiple Performance Obligations

When

a contract involves multiple performance obligations, the Company accounts for individual products and services separately if the customer

can benefit from the product or service on its own or with other resources that are readily available to the customer and the product

or service is separately identifiable from other promises in the arrangement. The consideration is allocated between separate performance

obligations in proportion to their estimated standalone selling price. The transactions to which the Company had to estimate standalone

selling prices and allocate the arrangement consideration to multiple performance obligations were immaterial.

The

Company provides standard product warranties for a term of typically up to one year to ensure that its products comply with agreed-upon

specifications. Standard warranties are considered to be assurance-type warranties and are not accounted for as separate performance

obligations. See Product Warranties for accounting policy on standard warranties.

Other

Policies, Judgments and Practical Expedients

Contract

balances. Contract assets and liabilities represent the differences in the timing of revenue recognition from the receipt of cash

from the Company’s customers and billings. Contract assets reflect revenue recognized and performance obligations satisfied in

advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the

contract. Receivable represents right to consideration that is unconditional. Such rights are considered unconditional if only the passage

of time is required before payment of that consideration is due.

12

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Remaining

performance obligations. Revenue allocated to remaining performance obligations represents the transaction price allocated to the

performance obligations that are unsatisfied, or partially unsatisfied. It includes unearned revenue and amounts that will be invoiced

and recognized as revenue in future periods and does not include contracts where the customer is not committed. The customer is not considered

committed where they are able to terminate for convenience without payment of a substantive penalty under the contract. The Company has

elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of

contracts with an original expected duration of one year or less.

Significant

financing component. In certain arrangements, the Company receives payment from a customer either before or after the performance

obligation has been satisfied. Typically, the expected timing difference between the payment and satisfaction of performance obligations

is one year or less; therefore, the Company applies a practical expedient and does not consider the effects of the time value of money.

The Company’s contracts with customer prepayment terms do not include a significant financing component because the primary purpose

is not to receive or provide financing from or to the customers.

Contract

modifications. The Company may modify contracts to offer customers additional products or services. Each of the additional products

and services are generally considered distinct from those products or services transferred to the customer before the modification. The

Company evaluates whether the contract price for the additional products and services reflects the standalone selling price as adjusted

for facts and circumstances applicable to that contract. In these cases, the Company accounts for the additional products or services

as a separate contract. In other cases where the pricing in the modification does not reflect the standalone selling price as adjusted

for facts and circumstances applicable to that contract, the Company accounts on a prospective basis where the remaining goods and services

are distinct from the original items and on a cumulative catch-up basis when the remaining goods and services are not distinct from the

original items.

Judgments

and estimates. Accounting for contracts recognized over time involves the use of various techniques to estimate total contract revenue

and costs. Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance

obligation will be revised in the near term. The Company reviews and updates its contract-related estimates regularly, and records adjustments

as needed. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated

costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis

in the period in which the revisions to the estimates are made.

Cost

of Sales

The

Company includes all manufacturing and sourcing costs incurred prior to the receipt of finished goods at its distribution facility in

cost of sales. Cost of sales include the fixed and variable manufacturing costs of the Company’s LiDAR products, which primarily

consists of personnel-related costs, including stock-based compensation for personnel engaged in manufacturing, assembly, and related

services, material purchases from third-party contract manufacturers and other suppliers which are directly associated with our manufacturing

process, as well as costs associated with excess capacity. Cost of sales also includes cost of providing services to customers, losses

on firm purchase commitments, write downs for excess and obsolete inventory, and shipping costs.

Research

and Development (R&D)

R&D

expenses consist primarily of personnel-related expenses, consulting and contractor expenses, tooling and prototype materials to the

extent no future benefit is expected, and allocated overhead costs. Substantially all of the Company’s R&D expenses are related

to developing new products and services, improving existing products and services, and developing manufacturing processes. R&D expenses

are expensed as incurred.

Stock-Based

Compensation

The

Parent provides stock-based compensation to certain employees, non-employees and directors in the form of equity classified awards and

to certain vendors and third parties by issuing stock in lieu of cash program. As the Company receives the employee services and vendor

services in consideration for the participation of the employees and vendors in these plans, stock-based compensation expense for the

awards granted to the Company’s employees and shares issued in lieu of cash has been reflected in the Combined Statements of Operations.

13

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Stock-based

compensation expense has been allocated based on the equity awards granted by the Parent to employees and vendors specifically related

to the Company. The Parent estimates the grant-date fair value of restricted stock based on the fair value of the underlying Parent common

stock less cash proceeds paid by the recipient to acquire the restricted stock, if any. The grant-date fair value of restricted stock

units is calculated based on the fair value of the underlying Parent common stock. The grant-date fair value of stock-based awards with

market conditions is calculated using a Monte Carlo simulation model. Stock-based compensation costs were $10.0 million and $116.2 million

during the years ended December 31, 2025 and 2024, respectively, and are included in the Company’s Combined Statements of Operations.

The components of stock-based compensation based on function are as follows (in thousands):

Year Ended December 31,

2025

2024

Cost of sales

$ 1,711

$ 4,531

Research and development

16,440

49,517

Sales and marketing

4,406

13,459

General and administrative (1)

(12,264 )

46,441

Stock-based compensation related to restructuring

(301 )

2,228

Total

$ 9,992

$ 116,176

(1)

For the year ended December 31, 2025, the reduction in expenses for share-based compensation is driven by forfeitures.

Income

Taxes

Income

taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for

the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets

and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities

by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates

on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Further, the Company’s

income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the stand-alone

financial statements of each member of the consolidated group as if the group members were a separate taxpayer and a stand-alone enterprise.

The calculation of income taxes on a separate return basis requires a considerable amount of judgment and use of both estimates and allocations.

As a result, actual transactions included in Luminar’s consolidated financial statements may not be included in the separate Combined

Financial Statements of the Company. Similarly, the tax treatment of certain items reflected in the Combined Financial Statements of

the Company may not be reflected in the consolidated financial statements and tax returns of Luminar.

The

Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination,

all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected

future taxable income, tax planning strategies, and results of recent operations. If it is determined that deferred tax assets would

be realized in the future, in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance,

which would reduce the provision for income taxes.

The

Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process which includes

(1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the

position, and (2) for those tax positions that meet the more likely than not recognition threshold. Recognized income tax positions are

measured at the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax

authority.

The

Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Combined

Statement of Operations. Accrued interest and penalties are included on the related tax liability line in the Combined Balance Sheets.

The

Tax Cuts and Jobs Act (“TCJA”) subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”)

earned by certain foreign subsidiaries. Under GAAP, the Company can make an accounting policy election to either treat taxes due on the

GILTI inclusion as a current period expense or factor such amounts into the Company’s measurement of deferred taxes. The Company

elected to treat the GILTI inclusion as a period expense.

14

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Recent

Accounting Pronouncements Adopted

In

December 2023, the FASB issued ASU No. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”).

ASU 2023-09 requires a public company to enhance the transparency and decision usefulness of income tax disclosures to provide information

to better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax

rate and prospects for future cash flows. The Company adopted ASU 2023-09 in 2025, with prospective application. See Note 8, Income Taxes,

for further information.

Recent

Accounting Pronouncements Not Yet Effective

In

September 2025,

the FASB issued ASU No. 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements

to the Accounting for Internal-Use Software (“ASU 2025-06”). The ASU was updated to consider different methods of software

development and requires internal use software costs to be capitalized when management has authorized and committed to funding the software

project and when significant uncertainty associated with the development of the software has been resolved. The ASU is effective for

annual reporting period beginning after December 15, 2027, and interim reporting within

those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently

evaluating the impact of ASU 2025-06 on the Company’s Combined Financial Statements.

In

July 2025, the FASB issued ASU No. 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts

Receivable and Contract Assets (“ASU 2025-05”). The ASU introduces a practical expedient for all entities when estimating

expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC

606 Revenue from Contracts with Customers. Under the practical expedient, when developing reasonable and supportable forecast as part

of estimating expected credit losses, an entity may assume that current conditions as of the balance sheet date do not change for the

remaining life of the asset. The ASU is effective for annual reporting period beginning after December 15, 2025, and interim reporting

within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods. The Company is currently

evaluating the impact of ASU 2025-05 on the Company’s Combined Financial Statements.

In

May 2025, the FASB issued ASU No. 2025-04, Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic

606): Clarifications to Share-Based Consideration Payable to a Customer (“ASU 2025-04”) to reduce diversity in practice

and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction

with selling goods or services. The ASU is effective for fiscal years beginning after December 15, 2026 with updates to be applied on

a retrospective or modified retrospective basis. Early adoption is permitted. The Company is evaluating the impact that this new standard

will have on the Company’s Combined Financial Statements.

In

November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures

(Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires public business entities to

disclose qualitative and quantitative information about certain costs and expenses in the notes to the financial statements on an interim

and annual basis. ASU 2024-03 will be effective for the Company for the fiscal years beginning after December 15, 2026, and interim periods

within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently in the process of evaluating

the effects of this pronouncement on the Company’s financial statements and does not expect it to have a material impact on the

Combined Financial Statements.

15

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Note

3. Bankruptcy Proceedings

Chapter

11 Cases

On

December 15, 2025 and December 31, 2025, as applicable, the Parent filed the Bankruptcy Petitions for relief under the Bankruptcy Code

in the Bankruptcy Court thereby commencing the Chapter 11 Cases.

In

addition to the Bankruptcy Petitions, the Parent filed, among other things, a motion with the Bankruptcy Court seeking joint administration

of the Chapter 11 Cases under the caption “In re Luminar Technologies, Inc. et al”. Following the Petition Date, the

Parent continued to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and

in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.

On

December 30, 2025, pursuant to a motion filed by the Parent, the Bankruptcy Court entered the Bidding Procedures Order, which, among

other things, approved global bidding procedures, and authorized the Parent to solicit bids for the consideration of the highest or otherwise

best offer for all or part of the Parent’s assets pursuant to section 363 of the Bankruptcy Code. On the same date, the Parent

filed initial proposed versions of the Chapter 11 Plan of Liquidation of Luminar Technologies, Inc. and its Affiliated Debtors and a

related disclosure statement with the Bankruptcy Court. The Plan of Liquidation provides for the liquidation of the Parent’s remaining

assets and the distribution of the proceeds thereof to its stakeholders and was subsequently amended on January 29, 2026, February 17,

2026, and February 18, 2026.

Commencing

in February 2026 through the date hereof, the Parent entered into an agreement to sell the business operations related to the Company.

For additional information regarding the sale of the Company, see Note 11, Subsequent Events.

As

a result of the ongoing bankruptcy proceedings, liabilities may be higher if accounts payable payments received prior to year-end are

clawed back. The amount of liabilities presented is the Company’s best estimate of all liabilities as of December 31, 2025.

Liabilities

Subject to Compromise

The

accompanying Combined Balance Sheets as of December 31, 2025 include amounts classified as liabilities subject to compromise, which

represent pre-petition liabilities the Company anticipates will be allowed as claims in Parent’s Chapter 11 Cases. These amounts

represent the Company’s current estimate of known or potential obligations to be resolved in connection with Parent’s Chapter

11 Cases.

The

following table sets forth, as of December 31, 2025, information about the amounts presented as liabilities subject to compromise in

the Combined Balance Sheets (in thousands):

December 31, 2025

Operating lease liabilities

$ 11,360

Accrual for loss on firm purchase commitments

42,811

Accounts payables

24,247

$ 78,418

Reorganization

Items

Certain

expenses and other items resulting from and recognized during the Chapter 11 Cases are recorded in reorganization items in the Combined

Statements of Operations. For the fiscal year ended December 31, 2025, $3.5 million presented as reorganization items in the Combined

Statements of Operations relates to professional fees and is presented as changes in operating assets and liabilities in the Combined

Statements of Cash Flows.

16

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Note

4. Revenue

The

Company’s revenue is comprised of sales of LiDAR sensors, NRE services and licensing of certain data and information available

with the Company.

Disaggregation

of Revenues

The

Company disaggregates its revenue from contracts with customers by type of good or service and timing of transfer of goods or services

to customers (point in time or over time), as it believes it best depicts how the nature, amount, timing, and uncertainty of its revenue

and cash flows are affected by economic factors. Total revenue based on the disaggregation criteria is as follows (in thousands):

Year Ended December 31,

2025

2024

Revenue

% of Revenue

Revenue

% of Revenue

Revenue by timing of recognition:

Recognized at a point in time

$ 30,466

74 %

$ 52,232

98 %

Recognized over time

10,510

26 %

1,299

2 %

Total

$ 40,976

100 %

$ 53,531

100 %

Contract

assets and liabilities

Changes

in the Company’s contract assets and contract liabilities primarily result from the timing difference between the Company’s

performance and the customer’s payment based on contractual terms. Contract assets primarily represent revenues recognized for

performance obligations that have been satisfied but for which amounts have not been billed. Contract liabilities consist of the Company’s

obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. Customer advanced

payments represent required customer payments in advance of product shipments. Customer advance payments are recognized in revenue as

or when control of the performance obligation is transferred to the customer.

The

balances of contract assets were as follows (in thousands):

December 31,

2025

2024

Contract assets, current

$ 2,192

$ 13,790

Contract assets, non-current

Ending balance

$ 2,192

$ 13,790

The

significant changes in contract assets balances consisted of the following (in thousands):

December 31,

2025

2024

Beginning balance

$ 13,790

$ 14,743

Amounts billed that were included in the contract assets beginning balance

(13,790 )

(1,852 )

Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed

2,192

899

Ending balance

$ 2,192

$ 13,790

17

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

The

balances of contract liabilities were as follows (in thousands):

December 31,

2025

2024

Contract liabilities, current

$ 51

$ 99

Contract liabilities, non-current

Ending balance

$ 51

$ 99

The

significant changes in contract liabilities balances consisted of the following (in thousands):

December 31,

2025

2024

Beginning balance

$ 99

$ 704

Revenue recognized that was included in the contract liabilities beginning balance

(99 )

(605 )

Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period

51

Ending balance

$ 51

$ 99

Remaining

Performance Obligations

Revenue

allocated to remaining performance obligations was $0.1 million as of December 31, 2025 and includes amounts within contract liabilities.

Due to the Chapter 11 Cases, the timing and amount of revenue recognition are subject to significant uncertainty.

Note

5. Restructuring and Other Costs

Restructuring

and other costs consist primarily of personnel-related restructuring expenses, including employee termination benefits and related costs.

Other costs relate to charges associated with the Chapter 11 Cases that were incurred prior to the filing date of Parent’s Chapter

11 Cases, primarily consisting of professional fees and other advisory costs associated with the evaluation and sale of certain businesses

and preparation for filing of Parent’s Chapter 11 Cases.

On

May 3, 2024, the Company announced a restructuring and cost reduction plan (the “Restructuring Plan”), which included reducing

its workforce and sub-leasing certain facilities. On September 20, 2024, the Company announced additional actions under the Restructuring

Plan that represented a cumulative workforce reduction of the Company’s full-time employees since the beginning of 2024. These

actions were substantially completed during the second quarter of 2025.

On

May 15, 2025, the Company began executing additional restructuring efforts (the “May 2025 Restructuring Plan”), including

a reduction in its workforce. The actions associated with the May 2025 Restructuring Plan were substantially completed by the end of

the third quarter of 2025.

On

October 29, 2025, the Company committed to a plan to further reduce its workforce in order to reduce operating costs (the “October

2025 Restructuring Plan”). The actions associated with the October 2025 Restructuring were substantially completed during the fourth

quarter of 2025.

On

December 18, 2025, the Company committed to a plan to further reduce its workforce in order to reduce operating costs (the “December

2025 Restructuring Plan”). The actions associated with the December 2025 Restructuring Plan were substantially completed during

the fourth quarter of 2025.

18

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Total

personnel related costs associated with the Restructuring Plan amounted to $5.9 million for the year ended December 31, 2025. These costs

have been included as restructuring costs in the Combined Statements of Operations. The following table summarizes the restructuring

charges as of December 31, 2025 (in thousands):

Severance Expense

Other Expense

Total

Balance as of December 31, 2024

$ 407

$ 407

Restructuring charges

5,872

15,841

21,713

Cash payments

(5,410 )

(15,841 )

(21,251 )

Non-cash charges

(227 )

(227 )

Balance as of December 31, 2025

$ 642

$ 642

Note

6. Financial Statement Components

Inventory

Inventory

consisted of the following (in thousands):

December 31,

2025

2024

Raw materials

$ 2,111

$ 5,717

Work-in-process

1

2,954

Finished goods

1,385

2,797

Total inventory

$ 3,497

$ 11,468

The

Company’s inventory write-downs were $12.6 million and $19.9 million during the years ended December 31, 2025 and 2024 respectively.

The write-downs were primarily due to obsolescence charges as a result of changes in product design, lower of cost or market assessment,

yield losses, and other adjustments.

Prepaid

Expenses and Other Current Assets

Prepaid

expenses and other current assets consisted of the following (in thousands):

December 31,

2025

2024

Prepaid expenses

$ 3,760

$ 5,121

Contract assets

2,192

13,790

VAT receivable

1,638

1,645

Income tax receivable

534

349

Other receivables

2,730

4,141

Total prepaid expenses and other current assets

$ 10,854

$ 25,046

19

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Property

and Equipment

Property

and equipment consisted of the following (in thousands):

December 31,

2025

2024

Machinery and equipment

$ 55,461

$ 55,276

Computer hardware and software

8,151

8,064

Land

1,001

1,001

Leasehold improvements

22,473

22,501

Vehicles, including demonstration fleet

2,179

2,139

Furniture and fixtures

282

302

Construction in progress

1,005

651

Total property and equipment

90,552

89,934

Impairment

(5,265 )

Accumulated depreciation

(53,661 )

(42,570 )

Total property and equipment, net

$ 31,626

$ 47,364

Depreciation

associated with property and equipment was $11.6 million and $19.9 million for the years ended December 31, 2025 and 2024, respectively.

Due

to significant financial and commercial hurdles and decline in sensor shipment because of slower automotive production ramps and the

end of legacy contracts, the earnings forecast for the next several years was revised. The Company recorded an impairment charge during

the third quarter of 2025 in the amount of $5.3 million.

In

2023, the Company commenced a change in sourcing of certain sub-assemblies and components from one supplier to another, which required

the Company to abandon certain equipment located at the legacy supplier. As a result, the Company reduced the useful lives of the long-lived

assets within the impacted asset group in line with when these assets were fully depreciated as of the second quarter of 2025. The reduction

in the estimated useful lives of the impacted assets resulted in the Company recording $0.3 million and $4.4 million of incremental accelerated

depreciation charges in the years ended December 31, 2025 and 2024, respectively.

Intangible

Assets

The

following table summarizes the activity in the Company’s intangible assets (in thousands):

December 31,

2025

2024

Beginning of the period

$ 9,190

$ 11,588

Amortization

(2,398 )

(2,398 )

End of the period

$ 6,792

$ 9,190

20

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

The

components of intangible assets were as follows (in thousands):

December 31, 2025

December 31, 2024

Gross

Carrying

Amount

Accumulated

Amortization

Impairment

Net

Carrying

Amount

Weighted Average

Remaining Period

(Years)

Gross

Carrying

Amount

Accumulated

Amortization

Impairment

Net

Carrying

Amount

Weighted Average

Remaining Period

(Years)

Assembled workforce

$ 368

$ (368 )

$ —

$ —

$ 368

$ (368 )

$ —

$ —

Developed technology

14,400

(7,608 )

6,792

3.3

14,400

(5,210 )

9,190

4.1

Total intangible assets

$ 14,768

$ (7,976 )

$ —

$ 6,792

3.3

$ 14,768

$ (5,578 )

$ —

$ 9,190

4.1

Amortization

expense related to intangible assets was $2.4 million for the years ended December 31, 2025 and 2024.

As

of December 31, 2025, the expected future amortization expense for intangible assets was as follows (in thousands):

Period

Expected Future

Amortization Expense

2026

$ 2,398

2027

2,398

2028

906

2029

770

2030

320

Thereafter

Total

$ 6,792

Goodwill

For

the years ended December 31, 2025 and 2024, the Company performed its annual goodwill impairment assessment and determined that no impairment

existed. The Goodwill balance of $1.8 million has been consistent since December 31, 2023 and no acquisitions or impairments have been

recorded related to the Company.

Accrued

and Other Current Liabilities

Accrued

and other current liabilities consisted of the following (in thousands):

December 31,

2025

2024

Warranty reserves

$ 4,827

$ 763

Accrued compensation and benefits

1,908

4,207

Provision for losses on NRE contracts

1,883

Accrued taxes payable

1,125

1,138

Accrued expenses

169

5,462

Other accrued liabilities

104

326

Total accrued and other current liabilities

$ 10,016

$ 11,896

Note

7. Leases

The

Company leases offices and manufacturing facilities under non-cancelable operating leases expiring at various dates through August 2032.

Some of the Company’s leases include one or more options to renew, with renewal terms that if exercised by the Company, extend

the lease term from one to six years. The exercise of these renewal options is at the Company’s discretion. When the implicit rate

in the Company’s leases is not readily determinable, the Company calculates its lease liabilities using discount rates based upon

a Bloomberg yield curve based on the synthetic rating of CCC, which considers current market conditions impacting the Company. The Company’s

lease agreements do not contain any material terms and conditions of residual value guarantees or material restrictive covenants. The

Company’s short-term leases and sublease income were not material.

21

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

In

September 2024, the Company reduced the leased space at one of its contracted manufacturing facilities in Mexico from approximately

320,873 square feet to 220,873 square feet, for the term from December 2024 to March 2025, and further to 125,873 square feet for the

lease term from April 2025 to August 2032. The Company determined that the amendment would be treated as a lease modification. The modification

resulted in a remeasurement of the operating lease right-of-use asset and lease liability, and the effect was a decrease to the right-of-use

asset and lease liability of $7.5 million and $7.8 million, respectively.

The

components of lease expenses were as follows (in thousands):

Year Ended December 31,

2025

2024

Operating lease cost

$ 6,473

$ 10,098

Variable lease cost

858

1,294

Total operating lease cost

$ 7,331

$ 11,392

Supplemental

cash flow information related to leases was as follows (in thousands):

Year Ended December 31,

2025

2024

Cash paid for amounts included in the measurement of lease liabilities:

Cash paid for operating leases included in operating activities

$ (7,189 )

$ (9,755 )

Recognition/derecognition of right-of-use asset in exchange for lease obligations:

Operating leases

(9,714 )

(5,277 )

Supplemental

balance sheet information related to leases was as follows (in thousands):

December 31, 2025

December 31, 2024

Operating leases:

Operating lease right-of-use assets

$ 12,084

$ 28,076

Operating lease liabilities:

Operating lease liabilities, current

$ 931

$ 8,928

Operating lease liabilities, non-current

2,273

21,731

Total operating lease liabilities

$ 3,204

$ 30,659

Weighted

average remaining terms were as follows (in years):

December 31, 2025

December 31, 2024

Weighted average remaining lease term

Operating leases

3.94

4.28

Weighted

average discount rates were as follows:

December 31, 2025

December 31, 2024

Weighted average discount rate

Operating leases

6.85 %

6.22 %

22

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Maturities

of lease liabilities were as follows (in thousands):

Year Ending December 31,

Operating Leases

2026

$ 5,095

2027

4,642

2028

2,877

2029

1,398

2030

879

Thereafter

1,667

Total lease payments

16,558

Less: imputed interest

(1,994 )

Total leases liabilities (1)

$ 14,564

(1)

Includes $11.4 million of operating lease liabilities which are currently classified as “Liabilities subject to compromise”

on the Combined Balance Sheets.

Note

8. Income Taxes

The

following table presents components of loss before provision for income taxes for the periods presented (in thousands):

Year Ended December 31,

2025

2024

United States

$ (285,191 )

$ (397,371 )

International

5,838

1,857

Loss before provision for income taxes

$ (279,353 )

$ (395,514 )

Provision

for income taxes for the periods presented consisted of (in thousands):

Year Ended December 31,

2025

2024

Current:

U.S. federal

$ —

$ —

U.S. state

Foreign

1,365

515

Total current:

1,365

515

Deferred:

U.S. federal

U.S. state

Total deferred:

Total provision for income taxes

$ 1,365

$ 515

23

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

The

reconciliation between the U.S. federal statutory income tax rate of 21% to the Company’s effective tax for the periods presented

is as follows (in thousands):

Year Ended December 31,

2025

2024

Income taxes (benefit) at statutory federal rate

$ (59,890 )

21.0 %

$ (83,448 )

21.0 %

State and local taxes, net of federal income tax effect (1)

— %

— %

Other Foreign

1,365

(0.5 )%

515

(0.1 )%

Global intangible low-taxed income

1,185

(0.4 )%

1,248

(0.3 )%

Change in valuation allowance

52,315

(18.3 )%

66,159

(16.7 )%

Stock-based compensation expense

6,206

(2.2 )%

15,673

(3.9 )%

Other Nontaxable or Nondeductible Items

184

(0.1 )%

368

(0.1 )%

Effective tax rate

$ 1,365

(0.5 )%

$ 515

(0.1 )%

(1)

The change in valuation allowance related to the state jurisdictions is included net in the state and local taxes for 2025 and 2024.

The

Company’s deferred income tax assets and liabilities as of December 31, 2025 and 2024 were as follows (in thousands):

Year Ended December 31,

2025

2024

Deferred tax assets:

Net operating loss carry forward

$ 417,359

$ 287,726

Tax credits

29,179

27,867

Accruals and reserves

815

96

Stock-based compensation expense

2,034

18,183

Lease liability (ASC 842)

97

7,570

Section 174 R&D capitalization

56,548

95,502

Inventory reserves

6,764

8,972

Depreciation and amortization

6,538

5,937

Other

23

27

Total deferred tax assets

519,357

451,880

Valuation allowance

(516,369 )

(444,989 )

Total deferred tax asset

2,988

6,891

Deferred tax liabilities:

ROU asset (ASC 842)

2,988

6,891

Total deferred tax liabilities

2,988

6,891

Net deferred tax assets (liabilities)

$ —

$ —

24

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

The

amounts of cash income taxes paid (refund received) by the Company were as follows:

Year Ended December 31,

2025

2024

Federal

State

Massachusetts

$ 3

$ —

New Jersey

12

Foreign:

Israel

44

145

India

208

156

Germany

185

(657 )

Other Foreign

27

13

Total

$ 479

$ (343 )

Note

that the sale of the Company to MicroVision in 2026 was a sale of assets with no stock conveying to MicroVision. Consistent

with the separate return approach, the Company presented deferred taxes on temporary differences and any carryforwards that could be

claim on the Company’s hypothetical return and assesses the need for a valuation allowance on the basis of projected separate return

results.

The

Company assesses the realizability of deferred tax assets based on the available evidence, including a history of taxable income and

estimates of future taxable income. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely

than not that all or some portion of deferred tax assets will not be realized. Due to the history of losses incurred by the Company,

management believes it is not more likely than not that substantially all of the U.S. domestic deferred tax assets can be realized. Accordingly,

the Company established and recorded a full valuation allowance on its U.S. domestic net deferred tax assets of $516.4 million and $445.0

million as of December 31, 2025 and 2024, respectively. The valuation allowance increased by $71.4 million in 2025.

No

deferred tax liabilities for foreign withholding taxes have been recorded relating to the earnings of the Company’s foreign subsidiaries

since all such earnings are intended to be indefinitely reinvested.

Utilization

of the net operating loss and tax credit carryforwards is subject to a substantial annual limitation due to the “ownership change”

limitations provided by Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (“IRC”) and other similar state

provisions. Any annual limitation may result in the expiration of net operating loss and tax credit carryforwards before utilization.

As of December 31, 2025, the Company had $1.5 billion of U.S. federal net operating loss carryforwards available to reduce future taxable

income, of which $1.4 billion will be carried forward indefinitely for U.S. federal tax purposes. The federal net operating loss carryforwards,

if not utilized, will begin to expire in 2035. The Company also has $1.4 billion of U.S. state net operating loss carryforwards. State

net operating loss carryforwards, if not utilized, will begin to expire on various dates starting 2028.

The

Company also has federal and state research and development (“R&D”) tax credit carryforwards of $31.2 million and $7.2

million, respectively, as of December 31, 2025. The federal research credit carryforwards will begin expiring in 2036 unless previously

utilized. A portion of the state research credit carryforwards will begin expiring in 2026 and the California research credits do not

expire.

On

July 4, 2025, the current administration signed the One Big Beautiful Bill Act (“OBBBA”), which includes comprehensive U.S.

corporate tax legislation. The legislation includes the modification and permanent extension of prior tax law under the Tax Cuts and

Jobs Act and the introduction of new provisions such as permanently reinstating the immediate deduction of domestic specified research

and experimental expenditures, permanent changes in the limitations for deducting business interest expense and permanently restoring

bonus depreciation allowances. Due to our valuation allowance on deferred tax assets, this tax law change did not result in a material

impact to our Combined Financial Statements.

25

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

A

reconciliation of the beginning and ending amount of unrecognized tax benefits as follows:

Year Ended December 31,

2025

2024

Unrecognized tax benefits as of the beginning of the year

$ 7,386

$ 6,239

Prior Year Additions

Reversal of Prior Year Positions

Current Year Additions

368

1,147

Unrecognized tax benefits as of the end of the year

$ 7,754

$ 7,386

The

Company has considered the amounts and probabilities of the outcomes that can be realized upon ultimate settlement with the tax authorities

and determined unrecognized tax benefits primarily related to credits should be established as noted in the summary roll forward above.

As

of December 31, 2025, the Company does not believe that it is reasonably possible that its unrecognized tax benefits would significantly

change in the following 12 months. Our policy is to recognize interest and penalties associated with uncertain tax benefits as part of

the income tax provision and include accrued interest and penalties with the related income tax liability on its consolidated balance

sheet. To date, we have not recognized any interest and penalties in its consolidated statements of operations, nor has it accrued for

or made payments for interest and penalties.

Note

9. Commitments and Contingencies

Purchase

Obligations

The

Company purchases goods and services from a variety of suppliers in the ordinary course of business. Purchase obligations are defined

as agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities

to be purchased, fixed, minimum, or variable price provisions, and the approximate timing of the transaction. The Company had purchase

obligations primarily for purchases of inventory, R&D, and general and administrative activities totaling $52.9 million as of December

31, 2025. For the year ended December 31, 2025, the Company recorded a loss of $42.8 million related to these firm purchase commitments

for purchases of inventory, which is included in cost of sales in the Combined Statements of Operations.

Legal

Matters

From

time to time, the Company is involved in actions, claims, suits and other proceedings in the ordinary course of business, including assertions

by third parties relating to intellectual property infringement, breaches of contract or warranties or employment-related matters. When

it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated, the Company records a

liability for such loss contingencies. The Company’s estimates regarding potential losses and materiality are based on the Company’s

judgment and assessment of the claims utilizing currently available information. Although the Company will continue to reassess its reserves

and estimates based on future developments, the Company’s objective assessment of the legal merits of such claims may not always

be predictive of the outcome and actual results may vary from the Company’s current estimates. The Company’s current legal

accrual is not material to the financial statements.

In

light of the Bankruptcy, the Parent has provided all necessary notice to the relevant court and parties securing litigation stays, as

provided under the Bankruptcy Code, for Company entities.

Note

10. Related Party Transactions

Historically,

the Company has been managed, strategically, in the normal course of business by the Parent. Accordingly, allocation of certain corporate

and overhead costs incurred by the Parent are reflected as expenses in the Combined Statements of Operations.

Research

and development support

The

Company receives support from other entities of the Parent for research and development support of specific LiDAR related products. Research

and development support from other entities of the Parent for the years ended December 31, 2025 and 2024 totaled $5.6 million and $11.8

million, respectively, and are recorded within research and development in the Combined Statements of Operations.

26

Luminar LiDAR Business

NOTES TO COMBINED FINANCIAL

STATEMENTS

Corporate

costs

Corporate

and overhead costs have generally been incurred and recorded centrally by the Parent and have been allocated to the Company. This includes

costs associated with executive oversight, accounting, finance, treasury, tax, legal, human resources, facilities, and information technology.

Facilities costs have been allocated based on relative headcount and relative square footage usage. IT costs have been allocated based

on a usage-based metric. All other allocable corporate costs have been allocated using a headcount-based metric. For the years ended

December 31, 2025 and 2024, costs allocated to the Company from the Parent were $14.5 million and $85.6 million, respectively, and are

included within general and administrative in the Combined Statements of Operations.

Cash

management and financing

The

Company’s cash process is maintained by the Parent. Accordingly, no cash or cash equivalents have been attributed to the Combined

Financial Statements. Contributions, both to and from the Parent’s cash process, are reflected as a component of net Parent investment

on the accompanying Combined Balance Sheets and as a financing activity on the accompanying Combined Statements of Cash Flows.

Contributions

related to services provided excess cash contributed to the Parent were $173.4 million and $273.6 million for the years ended December

31, 2025 and 2024, respectively. Net contributions to the Parent are included within net Parent investment in the Combined Statements

of Equity.

Year Ended December 31,

(in thousands)

2025

2024

Net contribution from the Parent reconciliation to transfers from the Parent

Net transfer from Parent

$ 181,533

$ 390,270

Stock-based compensation - equity classified awards (1)

$ (8,107 )

$ (116,691 )

Transfers from Parent

$ 173,426

$ 273,579

Transfers from Parent as reflected in the Combined Statements of Cash Flows

$ 173,426

$ 273,579

(1)

Reconciliation of stock-based compensation is as follows:

Year Ended December 31,

(in thousands)

2025

2024

Stock compensation reconciliation

Stock based compensation - equity classified awards

$ 8,107

$ 116,691

Stock based compensation - cash based classified awards

$ 1,885

$ (515 )

Total Stock Based Compensation expense

$ 9,992

$ 116,176

Total Stock Based Compensation expense in the Combined Statements of Cash Flows

$ 9,992

$ 116,176

Note

11. Subsequent Events

On

January 26, 2026, the Parent held an auction for the Company pursuant to the bidding procedures approved by the Bankruptcy Court (the

“Auction”). At the conclusion of the Auction, the Parent determined (i) the bid submitted by MicroVision, Inc. (“MicroVision”)

was the highest or otherwise best offer and designated MicroVision as the successful bidder for the Company’s LiDAR assets and

(ii) the bid submitted by QCi was the second highest or otherwise second best offer and designated QCi as the back-up bidder. As a result

of the Auction, on January 26, 2026, the Company and MicroVision entered into a Purchase Agreement (the “MicroVision Asset Purchase

Agreement”), pursuant to which, subject to the terms and conditions set forth therein, MicroVision agreed to acquire specified

assets related to the Company and assume certain liabilities, subject to the Bankruptcy Court’s approval, for cash consideration

of $33.0 million, plus cure costs of $0.2 million, subject to certain adjustments as contemplated by the MicroVision Asset Purchase Agreement.

On

February 3, 2026, following receipt of Bankruptcy Court approval, the Company completed the sale to MicroVision as contemplated by the

MicroVision Asset Purchase Agreement.

The

Company evaluated subsequent events through April 21, 2026, the date that the financial statements were issued. All subsequent events

requiring recognition or disclosure have been included in these Combined Financial Statements.

27

EX-99.2

EX-99.2

Filename: ex99-2.htm · Sequence: 4

Exhibit

99.2

UNAUDITED

PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The

following unaudited pro forma condensed combined financial information gives effect to MicroVision, Inc.’s (“MicroVision”,

“MVIS”, or the “Company”) acquisition of certain assets comprising the Light Detection and Ranging business (the

“Luminar LiDAR Business”) from Luminar Technologies, Inc. (“Luminar”).

MicroVision

entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) on January 26, 2026 with Luminar, pursuant to which

MicroVision agreed to acquire from Luminar certain assets comprising the Luminar LiDAR Business, subject to certain closing conditions

(the “Transaction”). On February 3, 2026, pursuant to the terms of the Asset Purchase Agreement, the Transaction was consummated

(the “Closing”, and the date on which the Closing occurred, the “Closing Date”) and MicroVision paid total consideration

of $33.2 million.

The

unaudited pro forma condensed combined balance sheet as of December 31, 2025 gives effect to the Transaction as if consummated as of

December 31, 2025. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2025 gives effect

to the Transaction as if it had occurred on January 1, 2025. The unaudited pro forma condensed combined balance sheet as of December

31, 2025 and unaudited pro forma condensed combined statement of operations for the year ended December 31, 2025 are collectively referred

to as the “Pro Forma Financial Information.”

The

Pro Forma Financial Information is based upon the historical financial statements of MicroVision and the Luminar LiDAR Business

and was prepared using the acquisition method of accounting. The Pro Forma Financial Information includes pro forma adjustments to the

historical financial information of the Company that reflect the application of required accounting for the Transaction (the “Transaction

Accounting Adjustments”). The Transaction Accounting Adjustments are based on available information and assumptions that the Company’s

management believe are reasonable. Such adjustments are estimates and actual experience may differ from expectations.

The

Pro Forma Financial Information has been derived from, and should be read in conjunction with:

● the

audited historical consolidated financial statements of MicroVision as of and for the year

ended December 31, 2025, which are included in MicroVision’s Annual Report on Form

10-K for the year ended December 31, 2025, and

● the

audited combined financial statements of the Luminar LiDAR Business as of and for the year

ended December 31, 2025, which are filed as Exhibit 99.1 to this Current Report on Form 8-K.

In

accordance with Article 11 of Regulation S-X, the Pro Forma Financial Information is provided for illustrative and informational purposes

only and does not purport to represent what MicroVision’s financial condition or results of operations would have been had the

Transaction occurred on the dates assumed, nor is it necessarily indicative of MicroVision’s future financial condition or results

of operations. The Pro Forma Financial Information does not reflect any expected cost savings or operating synergies, or the costs to

achieve any such benefits, that may result from the Transaction, nor does it reflect any revenue enhancements or reductions that could

result from changes to existing commercial relationships. Please see Note 5 of the Notes to Unaudited Pro Forma Condensed Combined

Financial Information for further discussion. In the opinion of management, all necessary adjustments to the Pro Forma Financial

Information have been made. The Company and the Luminar LiDAR Business have not had any historical relationship prior to the Transaction.

Accordingly, no pro forma adjustments were required to eliminate activities between the two parties.

1

UNAUDITED

PRO FORMA CONDENSED COMBINED BALANCE SHEET

As

of December 31, 2025

(in

thousands)

Historical MVIS

Historical Luminar LiDAR Business as Conformed

Transaction Accounting Adjustments

Note

Pro

Forma

Combined

ASSETS

Current Assets

Cash and cash equivalents

$ 32,363

$ —

$ (33,177 )

3(a)

$ 41,657

42,471

3(b)

Investment securities, available-for-sale

42,471

(42,471 )

3(b)

Restricted cash, current

497

497

Accounts receivable, net of allowances

47

2,711

(2,711 )

3(c)

47

Inventory

745

3,497

303

3(d)

4,545

Other current assets

4,989

10,854

(10,854 )

3(c)

4,989

Total current assets

81,112

17,062

(46,439 )

51,735

Property and equipment, net

4,280

31,626

(18,426 )

3(e)

17,480

Operating lease right-of-use assets

14,075

12,084

(7,860 )

3(f)

18,299

Restricted cash, net of current portion

1,204

1,204

Intangible assets, net

32

6,792

5,708

3(g)

12,532

Goodwill

1,750

1,927

3(h)

3,677

Other assets

2,416

3,440

(3,440 )

3(c)

2,416

Total assets

$ 103,119

$ 72,754

$ (68,530 )

$ 107,343

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

$ 1,628

$ 277

$ (277 )

3(c)

$ 1,628

Accrued liabilities

5,426

6,953

(6,953 )

3(c)

7,881

2,455

3(i)

Notes payable, current

19,212

19,212

Operating lease liabilities, current

3,481

931

154

3(f)

4,566

Finance lease liabilities, current

14

14

Other current liabilities

388

3,063

(3,063 )

3(c)

388

Total current liabilities

30,149

11,224

(7,684 )

33,689

Warrant liability

1,875

1,875

Operating lease liabilities, net of current portion

14,034

2,273

866

3(f)

17,173

Finance lease liabilities, net of current portion

27

27

Other long-term liabilities

1,486

184

(184 )

3(c)

1,486

Liabilities subject to compromise

78,418

(78,418 )

3(c)

Total liabilities

47,571

92,099

(85,420 )

54,250

Commitments and contingencies

Shareholders’ equity

Common stock

306

306

Additional paid-in capital

1,011,835

1,011,835

Accumulated other comprehensive income

669

669

Accumulated deficit

(957,262 )

(2,455 )

3(i)

(959,717 )

Net parent investment

(19,345 )

19,345

3(c)

Total shareholders’ equity

55,548

(19,345 )

16,890

53,093

Total liabilities and shareholders’ equity

$ 103,119

$ 72,754

$ (68,530 )

$ 107,343

See

notes to unaudited pro forma condensed combined financial information

2

UNAUDITED

PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

For

the year ended December 31, 2025

(in

thousands, except per share amounts)

Historical MVIS

Historical Luminar LiDAR Business as Conformed

Transaction Accounting Adjustments

Note

Pro Forma Combined

Revenue

$ 1,208

$ 40,976

$ (13,531 )

4(a)

$ 28,653

Cost of revenue

18,548

120,754

(870 )

4(b)

134,388

303

4(c)

(4,347 )

4(e)

Gross loss

(17,340 )

(79,778 )

(8,617 )

(105,735 )

Research and development expense

31,720

135,577

(29,891 )

4(a)

133,669

(1,148 )

4(d)

(2,589 )

4(e)

Sales, marketing, general and administrative expense

20,325

31,805

(4,715 )

4(b)

49,587

(283 )

4(e)

2,455

4(f)

Impairment loss on intangible assets

10,057

10,057

Impairment loss on operating lease right-of-use assets

1,201

1,125

2,326

Impairment loss on property and equipment, net

2,185

5,265

7,450

Restructuring and other costs

21,713

21,713

Total operating expenses

65,488

195,485

(36,171 )

224,802

Loss from operations

(82,828 )

(275,263 )

27,554

(330,537 )

Interest expense

(18,531 )

(18,531 )

Unrealized gain on derivative liability

5,709

5,709

Unrealized gain on warrant liability

4,422

4,422

Realized loss on debt extinguishment

(4,654 )

(4,654 )

Reorganization items

(3,450 )

(3,450 )

Other income (expense)

817

(640 )

829

4(b)

1,006

Net loss before taxes

$ (95,065 )

$ (279,353 )

$ 28,383

$ (346,035 )

Income tax benefit (expense)

84

(1,365 )

(5,960 )

4(g)

(7,241 )

Net loss

$ (94,981 )

$ (280,718 )

$ 22,423

$ (353,276 )

Net loss per share - basic and diluted

$ (0.35 )

$ (1.29 )

Weighted average shares outstanding - basic and diluted

273,136

273,136

See

notes to unaudited pro forma condensed combined financial information

3

Notes

to Unaudited Pro Forma Condensed Combined Financial Information

1.

Historical Luminar LiDAR Business

Certain

reclassification adjustments have been made to conform the historical financial statement presentation of the Luminar LiDAR Business

to the Company’s historical financial statement presentation. Aside from the reclassification adjustments identified herein, the

Company is not aware of any material differences between the financial statement presentation of the Company and the Luminar LiDAR Business.

Based

on the information currently available, the Company has determined on a preliminary basis that no significant adjustments are necessary

to conform the combined financial statements of the Luminar LiDAR Business to the accounting policies used by the Company.

The

following reflects the reclassification adjustments made to present the historical combined balance sheet of the Luminar LiDAR Business

as of December 31, 2025 in conformity with that of the Company:

Luminar

LiDAR Business

Combined

Balance Sheet

As

of December 31, 2025

(In

thousands)

Presentation in Historical Financial Statements

Conformance with MVIS Presentation

Luminar LiDAR Business Historical

Reclassification

Note

Historical Luminar LiDAR Business as Conformed

Assets

Accounts receivable

Accounts receivable, net of allowances

$ 2,711

$ —

$ 2,711

Inventory

Inventory

3,497

3,497

Prepaid expenses and other current assets

Other current assets

10,854

10,854

Property and equipment, net

Property and equipment, net

31,626

31,626

Operating lease right-of-use assets

Operating lease right-of-use assets

12,084

12,084

Goodwill

Goodwill

1,750

1,750

Intangible assets, net

Intangible assets, net

6,792

6,792

Other non-current assets

Other assets

3,440

3,440

Total Assets

$ 72,754

$ —

$ 72,754

Liabilities

Accounts payable

Accounts payable

$ 277

$ —

$ 277

Accrued and other current liabilities

Accrued liabilities

10,016

(3,063 )

1(a)

6,953

Operating lease liabilities

Operating lease liabilities, current

931

931

Other current liabilities

3,063

1(a)

3,063

Operating lease liabilities, non-current

Operating lease liabilities, net of current portion

2,273

2,273

Other non-current liabilities

Other long-term liabilities

184

184

Liabilities subject to compromise

Liabilities subject to compromise

78,418

78,418

Total Liabilities

92,099

92,099

Equity

Net Parent Investment

(19,345 )

(19,345 )

Total Equity

(19,345 )

(19,345 )

Total Liabilities and Equity

$ 72,754

$ —

$ 72,754

1(a)

Represents the reclassification of the Luminar LiDAR Business

balances from “Accrued liabilities and other current liabilities” to “Other current liabilities” to conform to

MicroVision’s historical presentation.

4

The

following reclassification adjustments were made to present the historical combined statement of the operations of the Luminar LiDAR

Business for the year ended December 31, 2025 in conformity with that of the Company:

Luminar

LiDAR Business

Combined

Statement of Operations

For

the Year Ended December 31, 2025

(In

thousands)

Presentation in Historical Financial Statements

Conformance with MVIS Presentation

Luminar LiDAR Business Historical

Reclassification

Note

Historical Luminar LiDAR Business as Conformed

Revenue

Revenue

$ 40,976

$ —

$ 40,976

Cost of sales

Cost of revenue

120,754

120,754

Gross loss

Gross loss

$ (79,778 )

$ —

(79,778 )

Operating expenses:

Research and development

Research and development expense

135,577

135,577

Sales and marketing

Sales, marketing, general and administrative expense

13,902

17,903

1(b)

31,805

General and administrative expenses

17,903

(17,903 )

1(b)

Impairment loss on operating lease right-of-use assets

1,125

1(c)

1,125

Impairment of long-lived assets

Impairment loss on property and equipment, net

6,390

(1,125 )

1(c)

5,265

Restructuring and other costs

Restructuring and other costs

21,713

21,713

Total operating expenses

Total operating expenses

195,485

195,485

Loss from operations

Loss from operations

(275,263 )

(275,263 )

Other income (expense), net

Other income (expense)

(640 )

(640 )

Reorganization items

Reorganization items

(3,450 )

(3,450 )

Provision for income taxes

Income tax benefit (expense)

(1,365 )

(1,365 )

Net loss

Net loss

$ (280,718 )

$ —

$ (280,718 )

1(b)

Represents the reclassification of the Luminar LiDAR Business’

“General and administrative expenses” amounts to “Sales, marketing, general and administrative expense” to conform

to MicroVision’s historical presentation.

1(c)

Represents the reclassification of the Luminar LiDAR Business’

impairment loss on operating lease right-of-use assets from “Impairment of long-lived assets” to “Impairment loss on

operating lease right-of-use assets” to conform to MicroVision’s historical presentation.

5

2.

Preliminary Purchase Price Allocation

The

Pro Forma Financial Information is based upon the historical financial statements of MicroVision and the Luminar LiDAR Business and was

prepared using the acquisition method of accounting. Under the acquisition method of accounting, the purchase price is allocated to the

assets acquired and the liabilities assumed based on their estimated fair values. The purchase price allocation is preliminary and is

subject to change prior to finalization, which may result from additional information becoming available and additional analyses being

performed on these acquired assets and assumed liabilities. The final purchase price allocation could result in material differences,

which could have a material impact on the accompanying Pro Forma Financial Information

The

table below represents the preliminary calculation of purchase consideration for the purposes of the Pro Forma Financial Information.

(in thousands)

Amount

Closing payment

$ 29,700

Payment for cure costs at closing

177

Release of escrowed funds to debtors

3,300

Total Purchase Consideration

$ 33,177

As

part of the Transaction, MicroVision agreed to pay $0.2 million to a lessor of the Luminar LiDAR Business in order to cure an existing

Luminar LiDAR Business lease obligation associated with one of the leases acquired.

The

following table presents a preliminary allocation of the purchase consideration to the fair values of the identifiable assets acquired

and liabilities assumed from the Luminar LiDAR Business, based on the combined balance sheet of the Luminar LiDAR Business as of December

31, 2025, as adjusted for reclassification adjustments as well as acquisition accounting adjustments shown below. The Transaction resulted

in a step-up or step-down to fair value for tax purposes such that no acquisition-date deferred tax effect applies to the assets acquired.

(in thousands)

December 31, 2025

Total Purchase Consideration for Luminar LiDAR Business Acquisition

$ 33,177

Inventory

3,800

Property and equipment, net

13,200

Operating lease right-of-use assets

4,224

Intangible assets, net

12,500

Total estimated fair value of assets acquired

$ 33,724

Operating lease liabilities, current

$ 1,085

Operating lease liabilities, net of current portion

3,139

Total estimated fair value of liabilities assumed

$ 4,224

Estimated net assets acquired

$ 29,500

Goodwill

$ 3,677

6

3.

Transaction Accounting Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet

(a) Represents

the adjustment related to the cash consideration paid by MicroVision for the acquisition

of the Luminar LiDAR Business.

(b) Prior

to the Transaction’s closing, the Company sold investment securities in order to fund

the Transaction. This adjustment represents the cash received upon the sale of the investment

securities.

(c) Represents

the elimination of the historical assets of the Luminar LiDAR Business that were not acquired

and liabilities not assumed, and the elimination of the net parent investment balance in

accordance with the acquisition method of accounting.

(d) Represents

the adjustment related to the preliminary fair value step up of inventory of the Luminar

LiDAR Business.

(in thousands)

Preliminary Fair Value

Raw Materials

$ 2,098

Finished Goods

1,702

Total inventory

3,800

Less: Historical book value of inventory

(3,497 )

Pro forma adjustment

$ 303

The

fair value adjustment to inventories is estimated to be expensed within one year from the Transaction Close, based on the expected inventory

turnover, as further described in Note 4(c) in these notes to the Pro Forma Financial Information.

(e) Represents

the adjustment to the estimated fair value of property and equipment acquired in the Transaction

and elimination of property and equipment not acquired.

(in thousands)

Preliminary Fair Value

Estimated Average Useful Life (in Years)

Estimated fair value of property and equipment

13,200

3

Less: Historical book value of Luminar LiDAR Business property and equipment

(31,626 )

Pro forma adjustment

(18,426 )

The

depreciation expense related to these assets is reflected as a pro forma adjustment in the unaudited pro forma condensed combined statement

of operations, as further described in Note 4(e) in these notes to the Pro Forma Financial Information.

(f) Represents

the adjustment related to remeasurement of the acquired leases as of the Transaction closing

date. The Company has measured the lease liabilities at the present value of the remaining

lease payments, as if the acquired leases were new leases. This includes lease payments for

renewal options that the Company is reasonably certain to exercise. The associated right-of-use

assets were remeasured at the same amount as the lease liability. At this time, management

has not identified any material favorable or unfavorable terms in the acquired leases.

(g) Represents

the adjustment to the estimated fair value of intangible assets acquired in the Transaction.

Preliminary identifiable intangible assets in the Pro Forma Financial Information are provided

in the table below:

(in thousands)

Preliminary Fair Value

Estimated Average Useful Life (in Years)

Customer relationships

$ 3,100

10

Developed technology

9,400

10

Total intangibles assets

$ 12,500

Less: Historical book value of Luminar LiDAR Business intangibles

(6,792 )

Pro forma adjustment

$ 5,708

The

straight-line amortization related to these identifiable intangible assets is reflected as a pro forma adjustment in the unaudited pro

forma condensed combined statement of operations, as further described in Note 4(d) in these notes to the Pro forma Financial Information.

7

(h) Represents

the adjustment to the preliminary estimate of goodwill as part of the Transaction, offset

by the elimination of historical goodwill. Goodwill represents the excess of total consideration

over the preliminary fair value of assets acquired and liabilities assumed.

(in thousands)

As of December 31, 2025

Estimated goodwill (i)

$ 3,677

Less: Elimination of Luminar LiDAR Business’ historical goodwill

(1,750 )

Pro forma adjustment

$ 1,927

(i)

Refer to Note 2 in these notes to the Pro Forma Financial Information for more details.

(i) MicroVision

has incurred or is expecting to incur $2.5 million of non-recurring transaction costs after

December 31, 2025. These costs primarily consist of acquisition related professional fees

and are recorded as accrued liabilities.

4. Transaction Accounting Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations

(a)

Represents the adjustment to eliminate the historical revenue

and operating expenses attributable to the Luminar LiDAR Business’ data and insurance business operations, which were not acquired

by MicroVision. In the Luminar LiDAR Business’ financial statements, expenses associated with these operations were classified

as research and development expense, rather than cost of revenue, consistent with how such activities were managed and reported. As a

result, the elimination of these operations reduces pro forma revenue without a corresponding reduction to cost of revenue, which has

an unfavorable impact on pro forma gross profit. No reclassification of these expenses have been made in the Pro Forma Financial Information,

as doing so would not accurately reflect the historical cost structure of the Luminar LiDAR Business.

(in thousands)

For the Year

Ended December 31, 2025

Revenue

$ (13,531 )

Research and development expense

(29,891 )

Please

see Note 5 of the Notes to Unaudited Pro Forma Condensed Combined Financial Information for further discussion regarding Pro Forma Combined

Revenue.

(b)

Represents the adjustment to eliminate historical income and

expenses related to leases not acquired by MicroVision, including a net gain on lease modifications relating to leases not acquired recorded

to “Other income (expense)”.

(in thousands)

For the Year Ended December 31, 2025

Cost of revenue

(870 )

Sales, marketing, general and administrative expense

(4,715 )

Other income (expense)

829

(c)

Represents the additional cost of revenue of $0.3 million recognized

in connection with the step-up of inventory to fair value. MicroVision will recognize the increased value of inventory in cost of revenue

as the inventory is sold, which is expected to occur within one year from the Transaction close.

(d)

Represents the adjustment to eliminate historical amortization

expense and recognize new amortization expense related to identifiable intangible assets based on the estimated fair value. Amortization

expense is calculated based on the estimated fair value of each of the identifiable intangible assets and the associated estimated useful

life as discussed in Note 3(g) above and is included under the research and development expense line item on the Pro Forma Financial

Information.

(in thousands)

For the Year Ended December 31, 2025

Estimated amortization expense of finite lived intangibles

$ 1,250

Less: Historical Luminar LiDAR Business amortization

(2,398 )

Pro forma adjustment

$ (1,148 )

8

(e)

Represents the adjustment to record elimination of historical

depreciation expense and recognition of new depreciation expense related to identifiable property and equipment based on the estimated

fair value. The depreciation of property and equipment is based on the estimated remaining useful lives of the assets as discussed in

Note 3(e) above.

(in thousands)

For the Year Ended December 31, 2025

Estimated depreciation expense of property and equipment

$ 4,400

Less: Historical Luminar LiDAR Business depreciation

(11,619 )

Pro forma adjustment

$ (7,219 )

The

below table represents the adjustment recorded in various line items on the unaudited pro forma condensed combined statement of operations:

(in thousands)

For the Year Ended December 31, 2025

Cost of revenue

$ (4,347 )

Research and development expense

(2,589 )

Sales, marketing, general and administrative expense

(283 )

(f)

Represents the adjustment related to transaction costs associated

with the Transaction, as discussed in Note 3(i) above. These transaction costs have been expensed under Sales, marketing, general and

administrative expense.

(g)

The income tax impact of the pro forma adjustments utilizes

blended statutory income tax rates in effect of 21.0% for the year ended December 31, 2025. The effective tax rate of MicroVision following

the Transaction could be significantly different depending on post-acquisition activities, including cash needs, the geographical mix

of income, and changes in tax law. Because the tax rates used for the unaudited pro forma condensed combined statement of operations

are estimated, the blended rate will likely vary from the actual effective tax rate in periods subsequent to the completion of the Transaction.

5. Commercial Relationships and Revenue Expectations

The

Company anticipates significant differences between financial and operating performance of the LiDAR Business as historically conducted

and as expected to be conducted by MicroVision. In particular, a significant automotive customer accounted for a material portion of

revenue in the historical financial statements of the Luminar LiDAR Business. The contract associated with that revenue was terminated

by the customer in the fourth quarter of fiscal year 2025.

Since

the closing of the transaction pursuant to the Asset Purchase Agreement, the Company has been working to repair certain customer

relationships and build trust with commercial partners that had been engaged with the Luminar LiDAR Business, and establishing

commercially acceptable terms with these partners. However, none of the customer contracts that had generated revenue for the

Luminar LiDAR Business prior to Closing were effectively transferred to the Company. The Pro Forma Financial Information is not

intended to represent forward-looking financial results and does not attempt to reflect the outcome of the Company’s efforts

and expectations of future commercial engagements.

9

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Feb. 03, 2026

Cover [Abstract]

Document Type

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Amendment Flag

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Amendment Description

On

February 3, 2026, MicroVision, Inc. (“MicroVision” or the “Company”) completed the acquisition of certain assets

from Luminar Technologies, Inc. (“Luminar”) related to Luminar’s advanced light detection and ranging (“LiDAR”)

sensor business (the “Acquisition”) pursuant to the previously announced Asset Purchase Agreement, dated January 26, 2026

and amended as of February 3, 2026. This

Amendment No. 1 on Form 8-K/A (“Amendment No. 1”) is being filed by MicroVision to amend its Current Report on Form 8-K filed

with the U.S. Securities and Exchange Commission (the “SEC”) on February 4, 2026 (the “Initial Report”) solely

to provide the disclosures required by Item 9.01 of Form 8-K that were omitted from the Initial Report, including the required historical

financial statements of the LiDAR business of Luminar and the required pro forma financial information. Except as otherwise provided

herein, the disclosures made in the Initial Report remain unchanged. This Amendment No. 1 should be read in conjunction with the Initial

Report, which provides a more complete description of the Acquisition.

The

pro forma financial information included in this Form 8-K/A has been presented for informational purposes only, is based on various adjustments

and assumptions and is not necessarily indicative of what the Company’s consolidated financial statements would have been had the

Acquisition and other adjustments been completed as of the dates indicated or will be for any future periods.

Document Period End Date

Feb. 03, 2026

Entity File Number

001-34170

Entity Registrant Name

MicroVision,

Inc.

Entity Central Index Key

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Entity Tax Identification Number

91-1600822

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DE

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18390

NE 68th Street

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City Area Code

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